Figures from the Society of Motor Manufacturers and Traders (SMMT) show that 56,300 electric cars were sold in September, the highest on record. But the lobby group complained that Government targets were putting too much pressure on the industry, with electric vehicle (EV) manufacturers forced to heavily discount vehicles.
Demand for the latest battery EVs (BEVs) hit a new record volume for any month in September, up 24.4% to 56,387 units, achieving a 20.5% share of the overall market and up from 16.6% a year ago. This was not enough, however, to shift market share significantly, which edged up from 17.2% in the first eight months to 17.8% from January to September. It is expected to reach 18.5% by the end of the year.
However, fleets drove much of this growth, with deliveries rising 36.8% to account for more than three-quarters (75.9%) of BEV registrations. Private BEV sales rose just 3.6%, even after unprecedented manufacturer discounting. This was equivalent to just 410 additional registrations.
Worryingly, consumer demand for diesel grew at a faster rate, increasing 17.1% in September – a volume uplift of 1,367 units.
Year-to-date private BEV demand was 6.3% down. The SMMT said this underlined “the scale of the challenge involved in moving the mass market to meet the mandated targets that were conceived in very different economic, geopolitical and market conditions.”
How life insurance can benefit your health and wellbeing over the decades
Sponsored by Post Office
The SMMT said that consumers lack confidence in the UK’s charging provision, despite recent investment and growth, which acts as a barrier to BEV take-up.
The UK’s zero-emission vehicle (ZEV) mandate aims to manage the phasing-out of new petrol and diesel car sales, and the switch to EVs, over the next six years. The targets are set to tighten every year until 2030, when sales of new petrol and diesel cars will be banned.
But car firms are calling for Government subsidies for EV sales in order to comply with the mandate.
The SMMT and 12 major vehicle manufacturers, representing more than 75% of the market, have written to the Government calling for measures to support consumers and help speed up the pace of the EV transition.
The demands, set out in a letter to Chancellor Rachel Reeves, include:
- Temporarily halving VAT on new EV purchases to put more than two million new ZEVs (rather than petrol or diesel) on the road by 2028.
- Scrapping the VED ‘expensive car’ tax supplement for ZEVs, due next year, to avoid penalising buyers.
- Equalising VAT on public charging to match the 5% home charging rate, and mandating infrastructure targets to support those who cannot charge at home.
- Maintaining and extending the business incentives that are working, including Benefit in Kind, which supports company cars and those on salary sacrifice schemes, and the Plug-in Van Grant.
Mike Hawes, SMMT’s chief executive, said: “September’s record EV performance is good news, but look under the bonnet and there are serious concerns as the market is not growing quickly enough to meet mandated targets. Despite manufacturers spending billions on both product and market support – support that the industry cannot sustain indefinitely – market weakness is putting environmental ambitions at risk and jeopardising future investment.
“While we appreciate the pressures on the public purse, the Chancellor must use the forthcoming Budget to introduce bold measures on consumer support and infrastructure to get the transition back on track, and with it the economic growth and environmental benefits we all crave.”
